Calculator
Compare your tax liability under the old and new regimes side-by-side and pick the cheaper one.
Employment
Old-regime deductions
New regime wins
Saves ₹67,860
versus the other regime, including 4% cess
New Regime
₹97,500
Old Regime
₹1,65,360
New regime wins by
₹67,860
The new regime (with rebate up to ₹12 lakh income) is better for most salaried taxpayers without significant deductions. The old regime wins only if your aggregate deductions (80C + 80D + HRA + home loan interest + standard deduction) exceed roughly ₹4–₹5 lakh, depending on income. This calculator shows both side-by-side so you can pick the cheaper one.
New regime slabs: 0–4L: 0%, 4–8L: 5%, 8–12L: 10%, 12–16L: 15%, 16–20L: 20%, 20–24L: 25%, above 24L: 30%. Old regime: 0–2.5L: 0%, 2.5–5L: 5%, 5–10L: 20%, above 10L: 30%. Health & Education Cess of 4% applies on tax in both regimes.
Effectively yes for FY 2025-26 — the Section 87A rebate gives a full rebate of tax payable up to ₹12 lakh income (₹12.75 lakh for salaried after standard deduction). Marginal relief applies just above ₹12 lakh so the tax does not jump abruptly. Above ₹12 lakh, slab tax kicks in.
Limited: standard deduction of ₹75,000 (salaried/pensioners), employer NPS contribution under 80CCD(2), and Agniveer Corpus deduction. Most popular deductions — 80C, 80D, HRA, home loan interest under 24(b) — are NOT available in the new regime.
Standard deduction is ₹75,000 in the new regime and ₹50,000 in the old regime, for FY 2025-26. Pensioners are also eligible. Self-employed taxpayers do not get standard deduction in either regime.
Log in to incometax.gov.in with PAN/Aadhaar, choose ITR-1 (most salaried) or ITR-2/3 (others), pre-fill from AIS/Form 26AS, declare income and deductions, e-verify with Aadhaar OTP / net banking / DSC. The portal walks you through validation and generates the acknowledgement (ITR-V).
Since FY 2023-24, the new regime is the default — but you can opt out and choose the old regime by declaring it to your employer or while filing ITR. The new regime won big in Budget 2025 with tax-free income up to ₹12 lakh through an enhanced 87A rebate. The old regime still pays off if you have large 80C, 80D, HRA, or home loan interest deductions.
We apply the FY 2025-26 slab tables, standard deduction (₹75K new / ₹50K old for salaried), 87A rebate (full up to ₹12L in new regime, up to ₹12,500 below ₹5L in old), marginal relief above ₹12 lakh in the new regime, and the 4% Health & Education Cess on the final tax. Deductions in the old regime are capped at the statutory limits.
Disclaimer: Calculation reflects FY 2025-26 (AY 2026-27) provisions. Surcharge above ₹50L income is not included and may further alter the comparison. Consult a CA for filing.
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